Section 10-222 - Bonds - Proceeds; sinking fund. - Maryland Statutes

§ 10-222. Bonds - Proceeds; sinking fund.
 

(a)  Use.- The Authority shall apply the proceeds of the bonds for the purposes for which the bonds are authorized. 

(b)  Sinking fund.-  

(1) The Authority shall set aside a sufficient amount of the revenues derived from a development or project in a sinking fund or other similar fund at regular intervals to the extent required in the trust agreement or resolution. 

(2) The sinking fund is pledged to paying: 

(i) the principal of and the interest on the bonds as they become due; and 

(ii) the redemption or purchase price of bonds retired by call or purchase as specified in the trust agreement or resolution. 

(c)  Other uses.- To the extent provided in the trust agreement or resolution, the Authority may exclude from the amount to be deposited in the sinking fund the revenues that may be necessary or convenient: 

(1) to pay for maintenance, repair, and operation of a development or project; 

(2) for reserves; and 

(3) for improvements to a development or project. 

(d)  Duration and effect of pledge.-  

(1) The lien of the pledge of revenues under subsection (b) of this section is valid and binding from the time the pledge is made. 

(2) The lien of the pledge is valid and binding against each party with a claim against the Authority in tort, contract, or otherwise, regardless of whether the party has notice of the lien. 
 

[An. Code 1957, art. 41, § 13-111(l); 2008, ch. 306, § 2.]